Full question:
My son and I purchased a vehicle less than a week ago (on 24 Feb) from a seller. The vehicle has 160K miles with no warranty. On the day of purchase, we picked the vehicle up and went directly to National Tire and Battery to have them adjust the alignment and perform an inspection of the engine. The technician on duty stated that the vehicle could not be properly aligned and that there was an undetectable oil leak. He also, told us that the radiator was empty. I immediately called the seller and told him about the problems. He instructed us to return the vehicle. The technician topped off the engine oil and radiator with fluids. On the way back to the seller's location, the vehicle's radiator blew up and the car died about 8 miles from the seller's location. The vehicle had been driven approximately 40 miles before it died. When I called the seller, he tried to say that we had done something to the vehicle, because it was running fine previously and refused to give our money back. The next day, the seller had the vehicle picked up and towed to his mechanic's location. The radiator was replaced and the dealer dropped the vehicle off at my house unannounced on February 26. We did not receive any transfer paperwork and the dealer refuses to answer my phone calls. Is it possible for us to get a refund for this vehicle?
- Category: Contracts
- Subcategory: Recission
- Date:
- State: Texas
Answer:
Courts have held that a party may rescind a contract for fraud, incapacity, duress, undue influence, material breach in performance of a promise, or mistake, among other grounds. In order to prove a fraud claim, it must be shown that the defendant had an intent to deceive. If deception was used to induce another to rely on a promise and such reliance caused harm, it is possible to recover damages. Fraud may be made by an omission or purposeful failure to state material facts, which nondisclosure makes other statements misleading.
To prove a material breach of contract that relieves a party of the obligation to perform their end of the bargain, it must be shown that the breach was significant enough to cause the transaction that was bargained for to no longer have value. It will be a matter of subjective determination for the court based on all the facts and circumstances involved, to determine if there has been a material breach of the contract or fraud. If a breach or fraud is found, it is possible that the contract may be rescinded and/or damages may be recovered.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.